2024-01-20 10:30:00
Semiconductor-related stocks remain highly popular. The search trend is likely to expand from large-cap stocks to small- and mid-sized stocks, and then to “hidden semiconductor stocks.”
-Thoroughly marks out unexpected semiconductor-related stocks such as hearing aids, nuclear power plants, ride sharing, golf equipment, ceramics, etc.-
Investors’ attention continues to be focused on semiconductors. This is because the market consensus is that demand will increase in the medium to long term due to the trend of digitalization that has accelerated due to the coronavirus pandemic and the development of cutting-edge technologies such as artificial intelligence (AI). . Semiconductors have become a strategic material for economic security along with energy and food, and governments around the world are all making plans to strengthen their production systems, creating a strong tailwind for related companies. Investment funds will continue to steadily flow into semiconductor-related stocks, and this will likely spread to stocks even remotely connected to semiconductors.
●What is the symbolic brand?
On the 9th of this month, the Nikkei Stock Average finally surpassed the high of July last year (33,753 yen), which it had repeatedly tried but bounced back to. After that, the price accelerated its rise and exceeded milestones one following another, reaching 34,000 yen and 35,000 yen, and on the 15th, it reached the 36,000 yen level. The driving forces behind the rise in stock prices include the Tokyo Stock Exchange’s market reforms and the launch of the new NISA, but the most notable is the rise in semiconductor-related stocks.In response to the trend of rising US high-tech stocks, Tokyo Electron <8035> [東証Ｐ]and Advantest <6857> [東証Ｐ]disco <6146> [東証Ｐ]SCREEN Holdings <7735> [東証Ｐ]is moving forward through the blue sky.Shin-Etsu Chemical <4063> [東証Ｐ]and laser tech <6920> [東証Ｐ]Semiconductor stocks continue to move steadily at their highest prices since their listing, and these low-priced semiconductor stocks have strongly pushed up the overall market price.
Semiconductors, the “rice of industry” that are installed in all kinds of products such as smartphones, home appliances, and cars, and are essential to the accelerating digitalization, are expected to see further demand growth in the future, and continue to be a popular theme in the stock market. It is attracting interest. Related stocks cover a wide range of products, from materials to parts to manufacturing equipment, and the search trend is expanding from the aforementioned mainstay large-cap stocks to small and medium-sized stocks. Under these circumstances, there is a movement to find “hidden semiconductor stocks” that do not focus on the semiconductor business but are also expanding into the semiconductor industry by leveraging the technology and know-how they have cultivated in their core business.
Ajinomoto is a symbol of hidden semiconductors. <2802> [東証Ｐ]is. Although it is a well-known major seasoning manufacturer, it is also expanding into the electronics field, and its semiconductor insulating material “Ajinomoto Build-up Film (ABF)”, developed using byproducts of umami seasonings, is used in PC CPUs and has sold almost 100 copies. % share. Of course, the main business of seasonings is also doing well. Consolidated net income for the fiscal year ending March 2024 is expected to be a record high, continuing from the previous fiscal year. Stock prices will also surpass the 1987 high in 2022, and continue to trend at record highs.
●8 small and medium-sized brands of hidden semiconductors
There are still many stocks like Ajinomoto on the stock market. This time, we have lined up eight small- and medium-sized stocks that are popular among individual investors from among the hidden semiconductor stocks. All of these companies have a strong presence in their core businesses.
Lion <6823> [東証Ｐ]is a major domestic manufacturer of hearing aids. We are working on a “particle counter” that measures the number of particles in the air or liquid, and is used in clean rooms of semiconductor factories and quality control of chemicals for semiconductors. The particle measuring instrument business, including this measuring device, accounted for nearly 30% of the company’s total sales (as of March 2021), making it the second-largest pillar following the medical equipment business, which includes hearing aids (regarding 50%). On an operating income basis, the progress rate for the first half compared to the full year is over 50%, which is good. Financial results are scheduled to be announced on January 30th.
Sukegawa Electric Industry <7711> [東証Ｓ]is a manufacturer of temperature measurement and heating products. Stocks often attract attention as stocks related to nuclear power plants, but when looking at the sales ratio by business (for the fiscal year ending September 2019), industrial systems-related businesses, which sell products for the manufacturing industry such as semiconductor manufacturing equipment, accounted for approximately 60% of the total. Energy-related business for power plants accounts for just under 40%. In the previous fiscal year ending September 2013, both businesses performed well and recorded record profits. Although profits are expected to decline slightly this fiscal year, the company plans to increase dividends compared to the previous fiscal year.
ＦＩＧ <4392> [東証Ｐ]is a holding company that was established in 2018 through the merger of Mobile Create, which provides systems for bus and taxi operators, and REALIZE (formerly Ishii Kogyo Kenkyujo), which manufactures semiconductor and automobile-related manufacturing equipment. Since the company is involved in a taxi dispatch system, interest has recently increased as a part of the ride-sharing industry. The company is developing a variety of businesses, including drones, autonomous transport robots, and payment systems, so there are many ways to look for things.
Nanhai Chemical <4040> [東証Ｓ]is a pioneer in basic chemicals, producing caustic soda, which is the basic raw material for all products, and sodium hypochlorite, which is used for sterilization and disinfection. It was newly listed on the TSE Standard in April last year. The company’s sulfuric acid recycling business is attracting attention, as it collects waste sulfuric acid from manufacturing industries, refines it, and sells it once more. The company holds a top class share in this field. In the future, the company plans to expand this business targeting semiconductor companies.
Fujikura Composite <5121> [東証Ｐ]is known as a major manufacturer of golf shafts, but its mainstay business is industrial materials, which handle control equipment for the semiconductor and liquid crystal markets. First-half results were significantly higher than previous forecasts due in part to the effects of the weaker yen, and operating income increased compared to the same period last year. Although we expect a slight decline in profit for the full year, we were surprised by the announcement of a significant increase in dividends in conjunction with the first half results. The company aims to achieve a PBR of 1x and has a shareholder return policy that aims for a total return ratio of 30%.
NORITAKE COMPANY LIMITED. <5331> [東証Ｐ]is a long-established manufacturer of high-quality ceramics and whetstones. The company has expanded its business to include electronic materials, manufacturing equipment, and industrial equipment by developing the ceramics technology cultivated through tableware manufacturing, and its main customers are the semiconductor, automobile, and steel industries. The key point is that the company is focusing on the semiconductor field, such as developing the LHA pad, a polishing tool for power semiconductor wafers, and promoting mass production. The company expects an increase in final profits and dividends for the fiscal year ending March 2024, due to progress in inventory adjustments by customers in the electronic materials division and the weaker yen.
Shibuya industry <6340> [東証Ｐ]is the largest manufacturer of filling equipment that puts beverages into plastic bottles and cans. In addition, the company offers a variety of industrial machinery, including semiconductor manufacturing equipment, medical equipment, cell culture systems, and agricultural equipment. Last year, the company strengthened its semiconductor field by acquiring a company that manufactures power semiconductor-related equipment. In the fiscal year ending June 2024, the company plans to increase operating profit for the first time in two years, thanks to a large backlog of orders for filling equipment and a recovery in the semiconductor market. The first quarter got off to a good start with profits 2.4x compared to the same period last year.
Kitagawa Iron Works <6317> [東証Ｓ]mainly produces cast parts for automobiles, construction and agricultural machinery, as well as industrial machinery and machine tools. In order to enter the semiconductor business, last year the company made two companies into subsidiaries: a semiconductor polishing material manufacturing and sales company and a manufacturing equipment manufacturer with semiconductor precision polishing technology, and expectations are high for future business growth. Due to the recovery in auto parts, operating profit is expected to increase 5.1 times in the fiscal year ending March 2024. Despite being a dividend-paying company, its PBR remains at an extremely cheap level of 0.3x.
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